Lenovo's Asia Pacific revenue climbs 28% as AI server demand reshapes the region's market

Regional growth trailed EMEA and the Americas, but the AI infrastructure story is where the opportunity sits.

Lenovo's Asia Pacific revenue rose 28 percent year-on-year in the first quarter of fiscal 2026/27, trailing the 53 percent and 58 percent growth the company posted in EMEA and the Americas respectively, even as the Group reported the strongest quarter in its history.

"Following Lenovo's best year in history, we have now delivered our strongest quarter ever," said chairman and CEO Yuanqing Yang in the earnings statement, pointing to AI as "a clear growth engine across every business group."

Yang also reiterated that this quarter has once again proven that Lenovoe not only delivers on its promises, but also have the capability to sustain that delivery.

“Operational excellence and relentless innovation are our foundation. Clear strategy and strong execution are our engine. They enable us to not just navigate market cycles, but to seize the opportunities and win,” he said.

“Earlier this year, we set a goal to reach $100 billion in revenue within two years. Given the momentum we have built in Q1, I'm confident we are ahead of schedule – and on track to achieve it sooner than planned,” Yang added.

In a LinkedIn post, Amar Babu, President at Lenovo Asia Pacific shared the latest financial results are strong evidence of the progress the vendor is making.

“Asia Pacific is building on the same momentum. Our AP sales region delivered another record quarter, with revenue reaching US$4.8 billion, up 28% YoY. Strong execution across hybrid AI, infrastructure, PCs, and smartphones continued to drive our growth across the region,” he said.

Echoing his sentiments is Sumir Bhatia, Chief Commercial Officer at Lenovo APAC who shared on LinkedIn that what he found “most encouraging is that devices, infrastructure, and services all set first-quarter records together.”

Breaking down the numbers

Group revenue hit an all-time quarterly high of US$26.9 billion, up 43% year-on-year, Lenovo said in its earnings statement released August 13. Adjusted net income crossed the US$1 billion mark for the first time, reaching US$1,075 million, up 176% from a year earlier. China revenue grew 25%, the slowest of Lenovo's four reporting geographies, while AI-related revenue across the Group climbed 60% to US$9.3 billion, now accounting for 35% of total revenue.

The numbers that matter most to resellers and system integrators across the region sit inside the Infrastructure Solutions Group, where revenue nearly doubled to a record US$8.5 billion on 98% growth. ISG's operating margin hit an all-time high of 9.1&, and the business turned an US$86 million operating loss a year ago into a US$777 million profit this quarter. Both Cloud Service Provider and Enterprise & SMB segments nearly doubled in revenue, and Lenovo said its AI server pipeline expanded to US$54 billion, up 157% quarter-on-quarter.

Lenovo also moved to the number two spot globally in x86 server revenue, a shift that has direct implications for the infrastructure vendors and integrators competing for enterprise deals as customers move AI workloads from pilot projects into production.

On the device side, Intelligent Devices Group revenue grew 27% to a record US$17.1 billion, with global PC market share reaching 24.2%, 0.5 percentage points higher than a year earlier and enough to extend Lenovo's lead over its nearest rival for a tenth consecutive quarter. The company said it holds the top spot in AI PCs globally too, with 25.1% share. Smartphone revenue rose 15% to a first-quarter record, and tablets grew more than 80%.

Solutions and Services Group, the unit most directly tied to managed services and partner-delivered offerings, posted revenue of US$2.9 billion, up 28%, with operating margin expanding two points to 24.2%. Lenovo said AI services revenue grew at a triple-digit rate as customers shifted from experimenting with AI to deploying it, and that its TruScale as-a-service business grew 35%. Managed Services and Projects & Solutions combined made up more than 62% of SSG revenue, a record mix.

The quarter also coincided with Lenovo's role as official technology partner for the FIFA World Cup 2026, spanning three countries, 16 cities and 104 matches. Executives framed the tournament less as a marketing exercise and more as a proof point for AI deployment at scale, though how directly that translates into deals for resellers on the ground in APAC remains to be seen in coming quarters.

Lenovo reiterated a target of reaching US$100 billion in Group revenue within two years, first set earlier in 2026. Yang said the company is "ahead of schedule" on that goal given the quarter's momentum, though the AP region's growth rate lagging the rest of the Group is a detail worth watching as resellers and integrators in the region weigh how much of that global AI infrastructure surge is actually landing on their doorstep.

R&D spending rose 30% year-on-year to US$682 million with funding going toward its Hybrid AI strategy, which spans personal AI agents Qira and Tianxi as well as enterprise AI tools built around its infrastructure and services portfolio.

Aaron Raj contributed to this report.